Strategic change and organisational restructuring: How managers negotiate change initiatives

Taplin, Ian M.

doi:10.1016/j.intman.2006.06.002

Cited by 29 publications

(28 citation statements)

References 25 publications

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“…We also build on existing studies of the subsidiary-parent relationship (Boussebaa et al, 2012;Clark & Geppert, 2011;Dörrenbächer & Gammelgaard, 2006;Dörrenbächer & Geppert, 2006;Meyer et al, 2011;Mudambi, 2011;Rouleau & Balogun;Taplin, 2006) by showing how actors create the social facts they rely on to undertake their reasoning about what is a 'rational' course of action to take: what Clark and Geppert (2011, p. 397) refer to as 'contextual rationalities'. This, we propose, enables us to explain why subsidiaries come to adopt certain courses of action, such as when to say nothing (sense-censoring) or do nothing (strategic inaction).…”

Section: Resultsmentioning

confidence: 99%

Sensemaking, Sense-Censoring and Strategic Inaction: The Discursive Enactment of Power and Politics in a Multinational Corporation

Whittle

Mueller

Gilchrist

et al. 2016

Organization Studies

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In this paper we contribute to knowledge of power and politics in international business by developing the understanding of the role of discourse and sensemaking in the subsidiary-headquarters relationship. Based on an ethnographic action research study in a British subsidiary of an American multinational corporation, we conduct an ethnomethodologically informed discourse analysis of the accounts, stories and metaphors through which power and politics in the subsidiary-headquarters relationship were created as social facts. We then broaden the analytic frame to trace longitudinally how these facts led the subsidiary managers to hide, dilute or restrict their 'local sense' from the headquarters, including their knowledge of the local market and their preferred strategic direction for the firm: a process we term sense-censoring. We reveal how the subsidiary used power and politics as reasoning procedures to decide against pursuing a preferred course of action, despite a strongly held belief to the contrary, due to anticipated reactions or counter-actions, thereby transforming potential strategic action into inaction. Sense-censoring is significant for international business management, we propose, because it impacts upon knowledge flows, innovation diffusion and organizational learning. We conclude by outlining the implications of systems of sense-censoring and strategic inaction for the management of global-local relations in multinational corporations.

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Section: Resultsmentioning

confidence: 99%

Sensemaking, Sense-Censoring and Strategic Inaction: The Discursive Enactment of Power and Politics in a Multinational Corporation

Whittle

Mueller

Gilchrist

et al. 2016

Organization Studies

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“…In this view, not only have political dynamics been largely neglected in the IB literature, but also the actions of subsidiary managers and employees themselves. Hence this stream of research has focused on how managers negotiate, accept or resist HQ intended strategies that impact on subsidiary development (see, e.g., Clark & Geppert, 2011;Dörrenbächer & Gammelgaard, 2006;Geppert & Williams, 2006;Taplin, 2006). Whether subsidiary role changes involve charter enlargement or reduction, micropolitical negotiation processes are an integral part of the subsidiary development process (Dörrenbächer & Gammelgaard, 2006;Taplin, 2006).…”

Section: Subsidiary Roles In Mnesmentioning

confidence: 99%

Selling, resistance and reconciliation: A critical discursive approach to subsidiary role evolution in MNEs

Balogun¹,

Jarzabkowski²,

Vaara³

2011

J Int Bus Stud

139

141

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Studies of political dynamics between multinational enterprise (MNE) parents and subsidiaries during subsidiary role evolution have focused largely on control and resistance. This paper adopts a critical discursive approach to enable an exploration of subtle dynamics in the way that both headquarters and subsidiaries subjectively reconstruct their independent-interdependent relationships with each other during change. We draw from a real-time qualitative study of a revealing case of charter change in an important European subsidiary of an MNE attempting to build closer integration across European country operations. Our results illustrate the role of three discourses -selling, resistance and reconciliation -in the reconstruction of the subsidiary-parent relationship. From this analysis we develop a process framework that elucidates the important role of these three discourses in the reconstruction of subsidiary roles, showing how resistance is not simply subversive but an important part of integration. Our findings contribute to a better understanding of the micro-level political dynamics in subsidiary role evolution, and of how voice is exercised in MNEs. This study also provides a rare example of discourse-based analysis in an MNE context, advancing our knowledge of how discursive methods can help to advance international business research more generally.

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“…According to TCE logic, opportunism together with specific assets is the key driver for contractual hazards among cooperating parties. Further, according to theory, opportunism will be significantly reduced if those independent parties are incorporated within one single organization (Williamson, 1985); however, opportunism will not vanish (Eisenhardt, 1989;Schotter and Beamish, 2011;Taplin, 2006). While governance structures may promote or curb certain behaviors, they do not fundamentally transform human nature.…”

Section: Discussionmentioning

confidence: 99%

“…All forms of organizations are subject to risks of opportunism (Williamson, 1975), but opportunism will not disappear with common ownership (Eisenhardt, 1989;Schotter and Beamish, 2011;Taplin, 2006). Cultural, spatial, and institutional distance decrease opportunities for headquarters to monitor subsidiaries, which makes opportunism particularly relevant in headquarters-subsidiary relations (Hennart, 1991), and if opportunities arise, opportunism from subsidiaries may drive ex post governance costs.…”

Section: Relational Factorsmentioning

confidence: 99%

Governance costs in foreign direct investments: A MNC headquarters challenge

Tomassen

Benito

Lunnan

2012

Journal of International Management

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According to transaction cost and internalization theories of multinational enterprises, companies make foreign direct investments (FDI) when the combined costs of operations and governance are lower for FDI than for market or contract based options, such as exports andlicensing. Yet, ex post governance costs remain a conjectural construct, which has evaded empirical scrutiny, and the lack of focus on the implications of these costs constitutes a challenge for management in multinational companies (MNCs). What effects does the ensuing establishment of subsidiaries abroad have in terms of governance costs? What factors drive these costs? We hypothesize that such costs are driven by external contingencies as well as factors that characterize a particular company headquarters-subsidiary relationship. Using survey data from Norwegian MNCs, this study investigates 159 MNC-subsidiary relationships. Overall, our framework is corroborated by the data.

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Strategic change and organisational restructuring: How managers negotiate change initiatives

Cited by 29 publications

References 25 publications

Sensemaking, Sense-Censoring and Strategic Inaction: The Discursive Enactment of Power and Politics in a Multinational Corporation

Sensemaking, Sense-Censoring and Strategic Inaction: The Discursive Enactment of Power and Politics in a Multinational Corporation

Selling, resistance and reconciliation: A critical discursive approach to subsidiary role evolution in MNEs

Governance costs in foreign direct investments: A MNC headquarters challenge

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